The Fair and Equitable Treatment Standard

This chapter provides a comprehensive analysis of the Fair and Equitable Treatment (FET) standard in international investment law from a distinctly Caribbean perspective, examining its various formulations – from clauses linked to customary international law to autonomous FET standards – and their differing thresholds for liability. The central argument advanced is that while the FET standard represents one of the most important investor protection mechanisms in contemporary investment agreements, its broad and evolving interpretation by arbitral tribunals makes it arguably the most invasive standard that may unduly constrain Caribbean states’ regulatory autonomy. The chapter critically assesses the constituent elements of FET (including legitimate expectations, transparency, denial of justice, and prohibitions against arbitrary treatment) while advocating for more balanced interpretations that account for developing states’ need to preserve policy space for legitimate public interest measures.